Posts for Ticker ‘LOCM’

The Unusual Suspects (AA, MOS, YUM, CVC, CIT, LOCM, RVSN, WFC)

bull-and-bear-image2It is the weekend and that means a review of last week’s unusual suspects and a review for key stocks in the week ahead.  Technically earnings season gets its first earnings report from a DJIA component in ACLOA Inc. (NYSE: AA) this week, as well as earnings from The Mosaic Company (NYSE: MOS) and from Yum! Brands, Inc. (NYSE: YUM).  Other key stocks to watch will be Cablevision Systems Corporation (NYSE: CVC), CIT Group, Inc. (NYSE: CIT) on the ropes, the real or unreal takeover chances for Local.com Corp. (NASDAQ: LOCM), and the unusual trading in Radvision Ltd. (NASDAQ: RVSN) and Wells Fargo & Company (NYSE: WFC).  We have provided more detailed information and analysis on each story below.
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Posted on: October 4, 2009 – 10:34 am in Agriculture, Banking, Buffett, Cable Companies, Calendar, Commodities, Dividend, Earnings, Editor's Picks, Food, Internet, Mergers and Buy Outs, Options, Private Equity, Rumors, The Week, Trading Alert, , , , , , , ,

Today’s Best Market Rumors (10/2/2009) (AAPL)(GE)(BAC)(GOOG)(TWX)

magazinUpdates throughout the day.

Update: Jeff Bewkes, CEO of Time-Warner (TWX) who says “Time, Inc. is not for sale.” (Atlantic First Draft of American History Conference)

Update:   John Paulson and Angelo Gordon may be buying debt in troubled phone company FairPoint (FRP) (NYPost)

Update:   BioCryst Pharm (BCRX) is spiking higher on takeover rumors (Briefing.com)

Comcast (CMCSA) is not going to buy GE’s (GE) NBC Universal unit or any part of it. (various)

Comcast is close to a joint venture to own NBCU in which the cable firm would own 51% (various)

Chrysler may fold within a year  (24/7 Wall St.)

GE may take NBCU public. (Reuters)

Pay czar Kenneth Feinberg may block Ken Lewis’s $125 million pay package at Bank of America (BAC). (Reuters)

Local.com (LOCM) may or may not be a buyout target for Microsoft (MSFT). The press release making an announcement of the deal is a fake. (Barron’s)

“Bank of England governor Mervyn King may have told economists this week, that the Bank had no immediate plans to change the rate paid to commercial banks on sums deposited overnight, but it appears not everyone believes him.” (FTAlphaville)

Apple (AAPL) plans to replace the decades-old PC “mouse” with touch technology in upcoming Macs. (AppleInsider)

Google (GOOG) has taken access to the homepage of file-sharing service Pirate Bay out of its search results. (The Register)

Apple’s iPhone market share could more than double if its exclusive deal with AT&T (T) ends (SAI).

Brian T. Moynihan, head of Bank of America’s (BAC) consumer unit, may be the top candidateto be the new CEO. (NYTimes)

Douglas A. McIntyre

Posted on: October 2, 2009 – 9:19 am in Rumors, , , , , , , , , , ,

Internet & Online Media Stock Expectations After Google Earnings (GOOG, BIDU, YHOO, IACI, VCLK, LOCM)

Money Stack ImageWhether you like the earnings report from Google Inc. (NASDAQ: GOOG) or not, there are some key takeaways using the same metrics that Google uses for other Internet and online media stocks.   Baidu, Inc. (NASDAQ: BIDU) has the most direct comparison,  particularly as everyone calls Baidu “the Chinese equivalent of Google.”  We won’t call it a knock-off, but we’ll leave it at that.  Yahoo Inc. (NASDAQ: YHOO) is on deck with earnings next week, and the metrics there have many comparisons to Google.  Then there isIAC/InterActiveCorp. (NASDAQ: IACI) further down the list with the Ask.com ties.  On the standalone ad metrics, we would include ValueClick Inc. (NASDAQ: VCLK), and lastly we want to address the much much smaller Local.com Corp. (NASDAQ: LOCM).  There are many other media and online companies, but we are looking for the direct pure-plays in this so we are not comparing apples to oranges or tennis balls.
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Posted on: July 17, 2009 – 12:11 pm in Earnings, Internet, Media, , , , , ,

Cult Stock Earnings Bonanza (DIVX, VCLK, CROX, HANS, LOCM, RNWK, RICK, TRLG, VG)

While most of the investment community goes out breaking down earnings for major stocks, there is a huge interest in many of the cult stocks reporting earnings.  Among the cult stocks we have reporting this week, the following is a list of key stocks reporting:  DivX, Inc. (NASDAQ: DIVX), ValueClick Inc. (NASDAQ: VCLK), CROCS Inc. (NASDAQ: CROX), Hansen Natural Corporation (NASDAQ: HANS), Local.com Corp. (NASDAQ: LOCM), RealNetworks Inc. (NASDAQ: RNWK), Rick’s Cabaret International Inc. (NASDAQ: RICK), True Religion Apparel Inc. (NASDAQ: TRLG), and Vonage Holdings Corporation (NYSE: VG). 

Cult stocks are often fad stocks, but they tend to see explosive volume on news and often have high short interest.  Many of these stocks have been covered in our weekly "10 Stocks Under $10" newsletter we send out too.  Here is a breakdown of these individually:

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Posted on: May 5, 2008 – 1:35 pm in Cult Stock, Earnings, , , , , , , , ,

Local.com Meets Barry Diller (LOCM, IACI)

Local.com (NASDAQ:LOCM) is seeing its shares surge some 15% pre-market after it signed a new pact today.  It has entered a strategic partnership with Barry Diller’s IAC/Interactive (NASDAQ:IACI).

Local.com says it will benefit from additional advertiser revenue and content on its site by displaying Citysearch business profile data including over one million editorial and user reviews, as well as ratings, business coupons and photos.  Citysearch will get to increase its advertiser reach on Local.com and its distribution network of over 400 regional media sites, which serve over 10 million visitors each month.

We recently highlighted Local.com (NASDAQ:LOCM) in our "10 Stocks Under $10" as one that would turn on the press release machines, and that was before it moved more than 40% in a single day.  IAC/Interactive (NASDAQ:IACI) is also under review for our Special Situation Investing Newsletter.  Here is our HOLIDAY DISCOUNT PAGE.

As usually expected, financial terms of the agreement were not disclosed.  Local.com (NASDAQ:LOCM) shares are up roughly 15% pre-market at $5.80. Its 52-week trading range is $3.05 to $13.74.

Jon C. Ogg
December 20, 2007

Posted on: December 20, 2007 – 9:01 am in Internet, , ,

Pre-Market Stock News (December 20, 2007) (ACN, ATVI, ALTU, ARRY, ATHX, BSC, BX, CAKE, ECHO, INTU, FDX, MLHR, IDEV, LDK, LEG, LOCM, NKE, ORCL, PIR, RIMM, RAD, RUTH, SMOD, SCS, DEEP, TRB)

This is not every bit of news on individual stocks but this is the major news affecting many shares in pre-market activity this Thursday morning:

  • Accenture (ACN) stock up 4% after posting $0.60 EPS vs. estimate of $0.56.
  • Activision (ATVI) again guided earnings higher.
  • Altus Pharmaceuticals (ALTU) traded down almost 20% after it reacquired ALTU-238 development and commercialization rights for North America from Genentech, an end to the development pact.
  • Array BioPharma (ARRY) traded down almost 20% after it announced initial results from a Phase II study comparing its monotherapy with temozolomide in the first-line treatment of advanced melanoma showed no apparent difference in efficacy for the primary endpoint.
  • Athersys (ATHX) and Angiotech announce authorization of Phase I stem cell trial for heart attacks.
  • Bear Stearns (BSC) expected to post first loss.
  • Blackstone (BX) plans to sell a $9 Billion CMBS offer backed by Hilton Hotels in Q1 2008.
  • Cheesecake Factory (CAKE) had a 10% stake taken by activist Nelson Peltz.
  • Electronic Clearing house (ECHO) getting acquired by intuit for $17.00 per share.
  • FedEx (FDX) $1.54 EPS vs. $1.50 estimates (had been lowered) but next quarter $1.15-1.30 vs. $1.38 est.; $6.40 to $6.70 for year bvs. $6.47 estimate.
  • Herman Miller (MLHR) $0.72EPS Vs. estimate of $0.59; stock rose about 10%.
  • Indevus Pharma (IDEV) trading down about 5% on a non-approvable letter from the FDA for VALSTAR NDA supplement (submitted May 2007).
  • Intuit (INTU) paying $131 Million for ECHO.
  • LDK Solar (LDK) $0.37 EPS on $157M revenues vs. $0.37/$143.22M est.; Q4 guidance $0.40-$0.41 on $180-$185M revenues vs. $0.41/$167.5M est.; stock indicated down 5%.
  • Leggett & Platt (LEG) stock down about 5% on lower guidance.
  • Local.com (LOCM) announced a strategic partnership with IAC/Interactive’s Citysearch; stock trading up 7% on news.
  • Nike (NKE) traded up 3% after $0.71 EPS on $4.3 Billion revenues vs. estimates $0.66/$4.3B.
  • Oracle (ORCL) traded up 6% after beating earnings and giving slightly higher guidance; sees enterprise spending lasting into 2008.
  • Pier 1 (PIR) -$0.11 EPS vs -$0.24 estimate.
  • Research-in-Motion (RIMM) reports earnings after the close today.
  • Rite Aid (RAD) indicated down about 5% after posting loss.
  • Ruths Chris (RUTH) gave an earnings warning.
  • Smart Modular Tech (SMOD) $0.18 EPS vs. $0.17 estimate.
  • Steelcase (SCS) $0.30 EPS vs. $0.28 estimate.
  • Superior Offshore (DEEP) signed a letter of intent with a strategic partner for ownership of a DP-III deepwater construction and dive support vessel expected to be delivered in late 2008.
  • Tribune (TRB) buyout supposedly set to close today.

Jon C. Ogg
December 20, 2007

Posted on: December 20, 2007 – 8:02 am in Pre-Market Activity, , , , , , , , , , , , , , , , , , , , , , , , , ,

Local.com Plays Into Expectations (LOCM)

Local.com Corp. (NASDAQ:LOCM) is seeing shares surge in pre-market trading activity.  24/7 Wall St. just noted the chances in this week’s "10 Stocks Under $10" newsletter that the company was likely to turn on its press release machine soon based upon the recent share price drop.  Guess what…

Local.com announced that it has signed five license agreements for its local search patent, which covers methods for indexing and retrieving internet related information by geographical location.  The patent licenses have been integrated into revised contracts for the LocalConnect platform, which was recently expanded under the acquisition of PremierGuide.  Former PremierGuide clients Community Newspaper Holdings, GateHouse Media, Herald Association, Intellistrand, and The Telegraph cover over 200 sites owned and operated by these properties that have now completed revised contracts with Local.com.

Financial terms were not disclosed, but a 15% pop to $4.33 in pre-market trading pretty much says it all.  Local.com was also a member of our "Small Cap Internet Watch List" of stocks that under the right circumstances could become acquisition targets of larger web, media, and IT companies.

Jon C. Ogg
November 15, 2007

Jon Ogg produces the 24/7 Wall St. Special Situation Investing Newsletter; he does not own securities in the companies he covers.

Posted on: November 15, 2007 – 8:41 am in Internet,

Local.com Gives Ammo For True-Believers & Critics Alike (LOCM)

Local.com (NASDAQ:LOCM) has posted its quarterly results.  The "local-oriented" micro-cap Internet stock posted revenue of $5.6 million (mid-range of guidance); 38% growth yr/yr and 10% sequential growth; local search revenue grew to $5.0 million. Diluted net loss after a $50.54 charge was -$0.71.

It also issued guidance: The company expects fourth quarter 2007 revenue of between $5.7 million and $5.9 million and the mid-range of local search revenue to be approximately $5.4 million, an increase of 8% over the third quarter 2007. The company expects net loss for the fourth quarter 2007 to be between $2.4 million and $2.6 million, or $0.17-$0.18 per share, which includes non-cash expenses of $0.9 million or $0.06 per share. The loss per share forecast assumes 14.2 million weighted average shares outstanding.

If you trust estimates from analysts on a micro-cap Internet stock, First Call noted -$0.57 EPS and $5.65 million revenues, supposedly with -$0.13 EPS and $6.3 million in revenues for next quarter.

This was one of our "Small Cap Internet Watch List" stocks that we feel was one of several that could end up becoming a takeover candidate under the right circumstances by a larger Internet or larger media and technology companies. 

As we noted to subscribers, none of those companies are to be considered imminent.  Any such deals would almost in every case be deemed very friendly to the top management at each as well, particularly since the companies that fit into these lists can adopt anti-takeover measures if they choose.  Local.com just last week announced that its Bylaws were amended and restated to allow for the issuance of uncertificated securities……

Other metrics Local.com disclosed: Revenue per thousand visitors (RKV) was $168, up 95% from $86 in the third quarter of 2006 and up 10% from $153 RKV in the second quarter of 2007. All outstanding convertible notes were converted into 2.0 million shares of common stock in July. The company currently has no debt. In July it began selling subscription ad products directly to local businesses. On September 30, 2007, the Company had $18.1 million in cash and marketable securities and no debt.

Shares appear to be up slightly in after-hours trading.  Frankly, 24/7 Wall St. would have liked to have seen more.  But the good news here is that many traders in this cult stock are possibly going to try to treat any stability or any growth as a win.

Shares closed down over 1% at $5.08 in normal trading today.  Shares were up marginally after the report, but shares have come back in since the initial reaction.

Jon C. Ogg
November 5, 2007

Jon Ogg produces the 24/7 Wall St. Special Situation Investing Newsletter; he does not own securities in the companies he covers.

Posted on: November 5, 2007 – 4:46 pm in Earnings, Internet,

Local.com Loving the U.K. (LOCM)

Shares of Local.com Corp. (NASDAQ:LOCM) are trading higher this morning after the company issued a press release stating that the search engine that pipes down into a local format has taken its United Kingdom off of beta status.  The new http://uk.local.com can easily see the following data:

  • Sort results by rating, distance, business name and category;
  • Limit results to a defined radius;
  • Filter results by related categories and nearby cities;
  • Sort by star ratings and read user reviews;
  • Access recent searches, which are now automatically saved for easy reference.

This company is actually a stock we’ve had on our small cap Internet watch list of potential BAIT SHOP candidates (now the Special Situation Investing Newsletter).  We have not ever added it as an official takeover candidate because of a myriad of reasons, but that is more structural rather than situational.

We are considering opening up this watch list of candidates to our subscribers of the newsletter, although please understand that a watch list is much different than an active list of actual takeover candidates.  We do not believe that the company would instantly be acquired and an entire group of circumstances would have to come together over a staggered time frame for this to occur.

Shares of Local.com are up 8% today at $6.92, although shares have traded as high as $7.25.  Its market cap is almost $98 million and NASDAQ lists that its September short interest grew 19% from August to 2.457 million shares. 

Other key articles related to this as follows:

Jon C. Ogg
September 26, 2007

Jon Ogg produces the 24/7 Wall St., LLC Special Situation Investing Newsletter; he does not own securities in the companies he covers.

Posted on: September 26, 2007 – 10:21 am in Cult Stock, Internet, , ,

Local.Com Renews With Yahoo! (LOCM, YHOO)

Local.com Corp. (NASDAQ:LOCM) has announced that it has renewed a multi-year agreement with Yahoo! (NASDAQ:YHOO).  Yahoo! will continue to deliver its sponsored search results to Local.com, including Local.com’s recently expanded local search network. 

This is a ‘renewal’ rather than a new pact but according to the release this gives an ongoing shot of delivering additional search traffic to Yahoo’s advertisers under the sponsored search results.  Unfortunately, no terms and conditions were disclosed in the announcement.

This is too small to have any impact on Yahoo! shares, but Local.Com (LOCM) shares are up 14% to $6.77 in pre-market trading.  As a reminder, this is one of the microcap web stocks that often sees large price swings on days when it has news.

Jon C. Ogg
September 4, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: September 4, 2007 – 7:45 am in Internet, , ,

Local.Com Private Placement Holders Register Shares After 3 Weeks (LOCM)

Local.com (NASDAQ:LOCM) last night had an SEC Filing that was registering 3.393 million shares for sale, although many of these aren’t going to be hitting the market based on conversion prices.  These are not new shares from the company per se because these are all from selling stockholders who received shares in a very recent private placement.  Here is the breakdown:

2,356,900 shares of common stock sold in a private placement transaction on July 31, 2007; and 1,037,036 shares of common stock which are issuable upon the exercise of warrants which were issued on August 1, 2007 in a private placement transaction.

These shares are from that $13 Million private placement completed only about 3 weeks ago, with the 2.3569 million shares being sold to two institutions at $5.50 per share and the rest being in warrants connected to those shares.  These warrants have higher strike prices, but this being 3 weeks into that private placement period is generally speaking far shorter than most registrations of unregistered securities from a private placement.

Shares closed at $5.09 yesterday and indications have not really been seen yet for trading today.

Jon C. Ogg
August 21, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 21, 2007 – 6:22 am in Secondary Offering, ,

Recent Market Malaise Extra Painful For Cult Stocks (CMGI, SFE, HOKU, LOCM, OMEX)

When you see close to a 10% drop in the broad market, you just automatically assume it punishes the speculative names even worse.  Being Hi-Beta has a price.  That wasn’t any different in the last mini-tank.  Many of these companies essentially have not had any real official change to their underlying stories.  But we all know that the ’story’ is dependent upon good times lasting for many quarters or longer. 

This last drop has been extremely tough on many of these speculative and ‘cult stocks’ over the last couple of weeks.  Here are a just a few of the instances in some of the more cult stock names we cover from time to time:

CMGI Inc. (NASDAQ:CMGI) is actually less than 10% above its 52-week lows of $1.20 now.  At $1.36 it is down almost 50% from the $2.60 highs.  This was a major cult stock for the first half of the year.  If the capital markets are closing it may crimp its wave of investing into recent alternative energy companies.  That argument seems flawed, and the ModusLink story has still been receiving coverage.  Here was what we The story didn’t seem like it has changed at all, but it is obviously not at all immune to a market tank nor to a softening economy and any tightening liquidity crunch isn’t going to be well received by CMGI speculators.

Safeguard Scientifics (NYSE:SFE) traded as high as $3.28 at the end of April, and shares sit at $2.00 mid-day.  Safeguard traded up after such a large move earlier this year at CMGI.  We interviewed the CEO at the end of June.  Maybe their own capital hasn’t dried up for investing, but partners may have a harder time pulling the trigger now.

Local.com (NASDAQ:LOCM) also saw shares skyrocket on a patent award and on other business developments, but even on the 2+% post-earnings gain today shares have fallen more than 50% from highs in July.

Hoku Scientific Inc. (NASDAQ:HOKU) is still up nearly 300% from lows, but it has been shares in recent weeks fall from highs of over $14.00 down to just under $8.00 today.  Its pending contracts have been viewed with less certainty over the future financing of its polysilicon factory under plans in Idaho.  That is the logic behind the slide any way.  We gave a "both sides of the coin" picture on this back in June, and right now it’s on tails.

Odyssey Marine (NASDAQ:OMEX), formerly OMR on AMEX, shares are higher after it filed amended complaints against Spain after Spain wants its treasure back for free that it lost in shipwrecks and after a recent brief company boat seizure and data copied from one of the laptops on board. This was the story that got Odyssey back on the map, no pun intended.

Obviously there are many names out there that have been given a hard market slap.  A 7% drop in the DJIA has equated to a 7% drop in the NASDAQ.  All eyes are on the FOMC today, although with a liquidity and a housing market at serious risk Bernanke & Co. probably have more on their mind besides small cap speculative stocks. 

In really tough times that won’t have major buyouts and times where investors may not be able to count on share buyback plans to add a floor, investors look at defensive stocks.  Here was our revised ‘bulletproof stock list’ from last week.  Just keep in mind that if a market stays tough, even the teflon stocks fall victime to the firing squad.

Jon C. Ogg
August 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 7, 2007 – 11:58 am in Cult Stock, HI/LOW, , , , , ,

Media Digest 8/7/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, Bear Stearns (BSC) has several potential buyers including JP Morgan (JPM) and Bank of America (BAC)

Reuters writes that a court overturned a patent infringement award won by Alcatel-Lucent (ALU) in a case against Microsoft (MSFT).

The Wall Street Journal writes that tough credit markets could slow share buy-backs by public companies.

The Wall Street Journal also writes that mortgage problems have hit buyers of high-end homes and rates for jumbo loans are increasing.

The Wall Street Journal reports that Microsoft (MSFT) has cut the price of its XBox 360 by $50.

The Wall Street Journal says that the White House passed on reversing a ban on imports of handsets containing Qualcom (QCOM) chips which violate certain patents of rival Broadcom (BRCM).

The Wall Street Journal reports that Ford (F) may have trouble Jaguar and Rover due to emissions standards in the EU.

The WSJ also reports that McDonald’s (MCD) will raise wages in China.

The WSJ reports that the National Music Publishers Association have join a copyright lawsuit against Google’s (GOOG) YouTube.

The WSJ reports that Cisco (CSCO) wants to turn itself into a consumer electronics company like Sony (SNE) and Apple (AAPL).

The Wall Street Journal also writes that Sun (SUNW) is introducing a powerful new chip that it hopes it can sell to other server companies.

The New York Times writes that Pfizer’s (PFE) new AIDs drug has received approval from the FDA.

FT writes that a study predicts that internet ad spending will pass newspapers in 2011.

Barron;s writes that Local.com (LOCM) beat Wall St.’s forecasts in the last quarter.

Douglas A. McIntyre

Posted on: August 7, 2007 – 3:16 am in Uncategorized, , , , , , , , , , , , ,

Local.com Posts Gains & Calls For More (LOCM)

Local.com (NASDAQ:LOCM) posted revenues of $5.1 million, up 51% year over year and over 4% sequentially.  The loss was $3.15 million or -$0.34 dilued and basic EPS.  Consensus estimates were -$0.35 and $5.07 million, although again we caution how thin the coverage is in the microcap web stock.

The company expects third quarter 2007 revenue of between $5.5 million and $5.7 million, the mid-range of which is a 10% increase over the second quarter 2007. We expect the mid-range of local search revenue to be approximately $4.8 million, an increase of 19% over the second quarter 2007. The company expects net loss for the third quarter 2007 to be between $9.2 million and $9.3 million, or $0.70 to $0.71 per share, which includes non-cash expenses of $7.4 million or $0.56 per share. The loss per share forecast assumes 13.1 million weighted average shares outstanding and guidance is based on 13.1 million weighted average shares outstanding.

It listed only $8.7 million in cash and marketable securities at the end of the quarter, but that has been bumped up recently with a $12 million net proceeds financing pact completed just last week.  Shares ar up about 2% in after-hours trading at $5.79, although it looks like shares had jumped almost 5% a few minutes ago.

Jon C. Ogg
August 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 6, 2007 – 4:02 pm in Earnings, Internet, ,

What Will Local.com Earnings Show? (LOCM)

Local.com Corp. (NASDAQ:LOCM) will post earnings after today’s close.  The company has very thin earnings coverage, but consensus estimates from First Call were -$0.35 EPS and $5.07 million on last look.  As with all microcaps like this, those estimates should be used as more of a ‘guestimate’ rather than set in stone.

The company has seen shares rocket up this year, but now they are back closer to levels before all the recent news came out.  Shares are down about 1% at $5.60 this morning, and the stock has a $3.05 to $13.74 trading range over the last year.  Unfortunately that $13.00 price was only briefly reached for two days in early July on new patent awards and the stock wasn’t able to hold anywhere close to it.

The stock has no options, and the actual analyst coverage is very very thin. The company posted $4.88 million in revenues last quarter and almost $3.63 million the quarter before. The July short interest was also listed as 1.79 million shares. That would be more than 20% of the float, but that was before a private placement at $5.50 per share for two institutions that raised $13 million for the company.  That $13 million was earmarked for acquisitions, sales channel development, IP, and general use.

With a lack of coverage and with a new cult stock following, the chat rooms and message boards will likely have more opinions and interpretations than anywhere else tomorrow (you are on your own there).  Either way, this one should be active in after-hours and tomorrow.  This is actually one of the few remaining microcap Internet stocks that we feel could easily be integrated into a much larger company, although the price and desire by management are more than just a mere consideration here. 

Jon C. Ogg
August 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 6, 2007 – 10:25 am in Cult Stock, Earnings, Internet, ,

Media Digest 3/20/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, Bernanke believes that subprime losses could hit $100 billion.

Reuters writes that GM (GM) closed the gap between itself and Toyota (TM) for total unit sales in Q2.

Reuters writes that Microsoft’s (MSFT) rose on improved profits from it Office division.

Reuters reports that Google’s (GOOG) net fell short of estimates.

The Wall Street Journal writes that banks raising $40 billion in buy-out debt for Chrysler and Alliance Boot has having to improve terms.

The Wall Street Journal wirtes that AMD’s (AMD) revenue rose in the most currently reported quarter.

The Wall Street Journal reports that a shareholder suit alleges that Monsters (MNST) founder was involved in back-dating options.

The Wall Street Journal also reports that Verizon Wireless has licensed Broadcom’s (BRCM) patents as a way around import prohibitions involving Qualcomm (QCOM) chips which violate its rivals patents.

The Wall Street Journal reports that heart procedures using stents have dropped sharply since January.

The New York Times writes that earnings fell at McClatchy (MNI) and Dow Jones (DJ).

FT reports that Viacom’s (VIA) controlling shareholder Sumner Redstone is pushing his daughter out as heir apparent.

Barron’s reports that Hearst has sold more shares in Local.com (LOCM).

Douglas A. McIntyre

Posted on: July 20, 2007 – 3:09 am in Uncategorized, , , , , , , , , , , ,

Local.com Spreads Its Wings, Acquires PremierGuide (LOCM)

Local.com (NASDAQ:LOCM) has been a crazy stock this year with a trading range of $3.05 to $13.74, and has been a bit of a cult stock because of its narrow local scope in search for many things in metro areas.  Shares are up 4% pre-market on news that the company is acquiring PremierGuide, a provider of online business directories to regional media publishers such as newspapers, TV and radio stations, and city portals.  If the company can integrate and execute this, it could give it a leg up over Local’s current model.

The acquisition price is said to be $2 million for 100% of the company.  PremierGuide’s unaudited revenue was approximately $800,000 for the last twelve months with net income of approximately $300,000 excluding salaries paid to founders.  PremierGuide launched in 2003, and its CEO Malcom Lewis, will become Local.com’s vice president of private label.  The company says this will make Local.com one of the largest syndicated private-label local search and directories with a network of over 400 regional media websites.  Premier has directories on over 350 sites including Community Newspaper Holdings, Inc., GateHouse Media, Inc. and Washington Post.  Local.com claims 10 million visitors per month already.

This will integrate into LocalConnect, which allows local newspapers, radio and television stations and yellow pages companies to incorporate Local.com’s local search technology into their websites via a customized, private label local business directory platform. 

Interestingly enough, if you think the company can achieve its goal you could make the argument that because this has a media focus Local.com could have just integrated a business that could act as an instant secondary or tertiary PR machine since local media could end up saying "Powered by Local.com."  That is assuming the company does actually have its name front and center, and how successful that is will depend upon its ability to secure that in its private-label agreements.

Jon C. Ogg
July 19, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 19, 2007 – 7:46 am in Internet, Mergers and Buy Outs,

Local.com’s (LOCM) Stock Falls: A Victory Of Reason Over Hope

Shares in Local.com (LOCM) are finally headed down after several days of furious rallying. The stock went from under $4 on June 28 to over $13 yesterday. It is off 11% today.

Local came out with two pieces of news. The company received approval for two patents. The first was for "the process of indexing and retrieving web-related information by geographical location", to use the company’s language. The second covers "the method of responding to enhanced directory assistance inquiries using various protocols including voice-enabled and SMS systems. The patent also covers an associated referral advertising model, which is designed to monetize those local searches."

The company was good enough to mention in each release that companies "using our intellectual property to enter into licensing agreements with Local.com."  Seems like a bit of a threat.

Of course, as companies involved in IP patent suits have found, counting chickens before they are hatched often doesn’t work. The recent legal battle between Limelight (LLNW) and Akamai (AKAM) should school Wall St. on that matter.

The other piece of news was that Hearst Communications has bought 22.4% of the company. Why that would matter to anyone is a puzzle.

Local.com is on its way back to where it should trade.

Douglas A. McIntyre

Posted on: July 6, 2007 – 9:41 am in Uncategorized, , ,

Local.com (LOCM): A Little Blackmail With Your Patent?

Local.com (LOCM) received a couple of patents that would appear to be pretty valuable. The first patent number 7,231,405 is for the process of indexing and retrieving web-related information by geographical location. The second patent number 7,200,413 is for the method of responding to enhanced directory assistance inquiries using various protocols including voice-enabled and SMS systems.

Local.com’s CEO made a couple of telling statements: "In our view, the burgeoning free 411 marketplace is being underwritten by a variety of advertising supported models. Our patent 7,200,413 is directly related to a referral advertising model such as pay-per-click or pay-per-call listings, which are delivered to consumers as a result of an enhanced directory assistance inquiry or local search, where the results can be provided to consumers via many mobile channels, including voice," said Heath Clarke, Chairman and CEO, Local.com.

"We encourage directory assistance and free 411 companies that are interested in using our intellectual property to enter into licensing agreements with Local.com." He made the same comment about the first patent.

In other words, which, with a 40% run-up so far today to a 52-week high of $10 and a market cap of $89 million intends to become an intellectual property licensing company. Based on the company’s falling annual revenue and an operating loss of $13.6 million in 2006, the new model may be a good idea.

But, the patents are almost certain to be challenged in court, so Local may want to raise a legal fund.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com.

Posted on: July 2, 2007 – 8:42 am in Uncategorized,